Business

US Supreme Court to hear arguments from Argentina, creditors on access to foreign assets

The Canadian Press -
Apr 21, 2014 / 11:42 pm | Story:
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Photo: The Canadian Press. All rights reserved.

In this Jan. 28, 2014 photo, office workers are reflected in a building's decorative mirrors in downtown Buenos Aires, Argentina. THE CANADIAN PRESS/AP, Victor R. Caivano

WASHINGTON - The U.S. Supreme Court is hearing arguments Monday in Argentina's decade-long battle with holders of its defaulted bonds.

The question now before the court is relatively narrow, focusing on whether a sovereign nation can be forced to reveal its assets around the world so plaintiffs can collect on U.S. court judgments.

But the justices will be watched closely for clues to how they might rule on a more critical case involving the same players: the Argentine government's appeal of a $1.4 billion judgment that it says could destroy the country's economy and damage the U.S. financial system.

So far, the courts have backed NML Capital Ltd., which won an unprecedented judgment that would block Argentina's payments to all other bondholders unless it pays cash first to the plaintiffs.